Canada Lithium Signs Purchase Agreement to Sell Tully Gold Prospect
TORONTO, ONTARIO -- (Marketwire) -- 08/10/10 -- Canada Lithium Corp. (TSX: CLQ)(OTCQX: CLQMD)(PINK SHEETS: CLQMD) ('Canada Lithium') announced today that it has entered into a purchase agreement with San Gold Corporation ('San Gold') and SGX Resources Inc. ('SGX') to sell a 100% interest in 18 mineral claims held by Canada Lithium located in Tully Township, Porcupine Mining Division of northern Ontario (the 'Tully Gold Prospect').
The consideration to be paid for the Tully Gold Prospect by San Gold and SGX consists of $200,000 in cash, 600,000 common shares of SGX and 150,000 common shares of San Gold.
The agreement is subject to receipt of all necessary approvals of regulatory, stock exchange and securities authorities, as well as approval by the boards of San Gold, SGX and Canada Lithium. Final closing of the sale of the Tully Gold Prospect is expected to take place in the next couple of weeks.
In other developments, Canada Lithium points out that its shares trading on the U.S. QX exchange are temporarily trading under the symbol CLQMD following its successful completion of the recent share consolidation and share split that affected only those shareholders with less than 100 shares. These holders were given cash to relinquish their holdings. (See release dated July 20, 2010.)
The original QX symbol CLQMF will be reinstated shortly.
About Canada Lithium Corporation
Canada Lithium Corp. is a Canadian-based 'clean tech' mine developer trading under the symbol CLQ on the TSX and on the U.S. OTCQX market under the symbol CLQMD. The Company is in the midst of a definitive Feasibility Study (FS) by engineering firm BBA Inc. of Montreal on its Quebec Lithium Project near Val d'Or, the geographical heart of the Quebec mining industry. A positive FS would lead to construction of an open pit mine and processing plant capable of producing by late 2012 approximately 43 million pounds of battery-grade lithium carbonate to meet the growing needs of the emerging global market for electric and hybrid electric vehicles. It has an agreement with Japanese metals trading firm, Mitsui and Co. Ltd., to market a portion of Canada Lithium Corp.'s product in China, Korea and Japan. Metallurgical tests have produced battery-grade lithium from deposit samples.
Please visit the Canada Lithium website at www.canadalithium.com.
Corporate Office: 401 Bay St., Suite 2010, P.O. Box 118, Toronto, Ont. M5H 2Y4
Forward-looking Information
The statements made in this press release may contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of Canada Lithium Corp. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of Canada Lithium Corp. management as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the Company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the Company. Canada Lithium Corp. disclaims any obligation to update information contained in any forward-looking statement.
Contacts:
Canada Lithium Corp.
Peter Secker
President and CEO
(416) 361-2821
Canada Lithium Corp.
Olav Svela
Director, Investor Relations
(416) 361-2821 or 705-848-9192
Cell: 905-442-8663
osvela@canadalithium.com
Renmark Financial Communications Inc.
Christine Stewart
(416) 644-2020
cstewart@renmarkfinancial.com